Former Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has been accused of using proxies to acquire some Nigerian banks while in office.
Emefiele reportedly used proxies to acquire Union Bank of Nigeria for Titan Trust Bank (TTB) Limited, as well as Keystone Bank.
The report of Jim Obazee, the special investigator appointed by President Bola Tinubu to probe the CBN, revealed that there was no evidence of payment for the banks by the new owners.
In some instances, Emefiele approved interest-free loans for cronies for the purchase of the banks.
In a December 20, 2023 memo to President Tinubu, titled, “Report of the Investigation of the Acquisition of Union Bank of Nigeria by Titan Trust Bank,” the special investigator recommended the reversal of the sales and recovery of Union Bank and Keystone banks for the Federal Government.
Acquisition of Union Bank
TTB, the new owners of Union Bank, is owned by Luxis International DMCC and Magna International DMCC, said to be based in Dubai, United Arab Emirates.
The two firms are reportedly owned by Vink Corporation Middle East FZC and controlled by Cornelis Vink.
But the two entities which acquired Union Bank do not have physical presence in Dubai.
In a memo to President Tinubu, the investigator stated that: “When carrying out our investigation, we discovered that some persons were used as proxies by Mr. Godwin Emefiele to set up Titan Trust Bank and acquire Union Bank, all from ill-gotten wealth. We were able to secure some documents, and investigation reports will lead to the forfeiture of the two banks by the federal government.
“We have completed our investigation on this acquisition and have also held meetings with relevant parties except for Mr Cornelius Vink (currently hospitalised in Switzerland). We are on the verge of recovering these two banks for the federal government.”
The report added: “The special investigator probed the activities of the TTB and discovered that there is a mysterious shareholder who has given interest-free long-term loan to (with no fixed repayment schedule) to the entities mentioned above (Luxis International DMCC and Magna International DMCC). This mysterious shareholder is believed to be Mr. Godwin Emefiele.
“The special investigator requested the supposed owner of TTB and ultimate acquirer of Union Bank of Nigeria, Mr. Cornelis Vink, to submit proof of funds, internationally verifiable bank statements (from incorporation of the entities to date), and the shareholder that gave interest-free loans to the two entities separately, names, nationality, source of fund, proof of fund, bank statements) as well as relationship of the entities with Mr. Andrew Ojei, Jerome Shogbon, Rahul Savara, Winston Odeh, Adaeze Udensi, Ekene Louis, Godwin Emefiele, Macombe Omoile, Tunde Lemo, Mudassir Amry, Faruk Gumel, Oluremi Oni, and Vink Corporation Middle East FCZ together with the details of the shareholder that also gave Vink Corporation interest-free loan and your good self.
“A letter came from Union Bank of Nigeria claiming he is sick and can only come to meet with the special investigator or submit the documents requested when he gets well by the end of September 2023. As of today, December 20, 2023, we are yet to hear from him nor receive any of the requested documents.”
Acquisition of Polaris Bank
In another report titled, “Report of the Investigation of the Acquisition of Keystone Bank,” the special investigator stated that Keystone Bank was acquired for free.
The late Alhaji Ismaila Isa Funtua, an ally of former President Muhammadu Buhari, alongside Emefiele were fingered in the acquisition of Keystone Bank and another bank.
Based on preliminary report, the investigator stated that some persons were used as proxies with the connivance of Emefiele and the CBN to acquire the bank without evidence of payment.
It stated: “AMCON MD moved N20 billion to Heritage Bank as placement sometime in 2010. On the back of that, Heritage Bank granted a loan of N25 billion to the promoters of Isa Funtua/Emefiele group’s acquisition vehicles to buy Keystone Bank.
“The loan was further backed by the shareholders of the bank. Upon acquisition, Keystone Bank returned the N20 billion back to Heritage Bank as placement. Thereafter, Heritage Bank repaid AMCON from the cash flow created.
“When the loan granted by Heritage Bank to Isa Funtua/Emefiele’s acquisition vehicles matured with outstanding balance, the MD of Heritage Bank (which was then in serious liquidity crisis), called for repayment. Unfortunately for the shareholders of the bank, the Isa Funtua/Emefiele Group could not repay.
“Consequently, the MD of Heritage got his lawyers to write to the bank on two occasions, threatening to take over Keystone Bank based on the shares they had pledged as security.
“After much pressure from him, Keystone Bank created internal loans of about N50 billion between June and October 2019 and moved the proceeds to repay Heritage Bank on behalf of their group. However, the MD of the bank at that time had resigned due to consistent pressure from him and the shareholders to comply. The internal loans so created are not being serviced and have gone bad.
“The special investigator has commenced the interrogation of the MD of AMCON to clarify the situation of the acquisition of another bank and Keystone banks beside Arik Air, Aero Contractors and the financial reporting by AMCON.”
Obazee said a preliminary review of the case showed that “Keystone was acquired for free as did Polaris Bank and the special investigator should liaise with the CBN to recover these two banks to the Federal Government of Nigeria.”
